Insurance companies are always out there wringing their hands, crying poor, and accusing everyone else for high insurance rates and, oh yeah, those “frivolous lawsuits”. The truth is the insurance industry was designated as a special class of corporation over 50 years ago. This special class was caused by exempting them from the McCarran-Ferguson act that prohibits monopolies, among other things.
This special exemption has permitted insurance companies to legally collude over pricing, effectively giving them an invitation to participate in price fixing and limiting market availability.
I have wanted to write an entire article about this whole issue a number of times, but I frankly never had the time to do all the research necessary.
Joanne Doroshow has done the work and written an excellent article for the Huffington Post. Her article is titled:
Medical Malpractice Insurers: Time to End Their License to Gouge.
I highly recommend reading this article that sets forth some of the best reasons why crying about frivolous lawsuits, tort reform and insurance company breaks is so much, well, lies.
Thank you, Ms. Doroshow.